A new report issued by Bloomberg shows promise for hedge funds not governed by White males. The analysis, which was conducted over a three-year and a five-year period, showed that hedge funds managed by minority or women outperformed those managed by their White counterparts. The statistics were calculated as 6.6 percent vs. 3.9 percent over a three-year period for multiple types of hedge funds, and as 41 percent in a five-year period, for macro funds, which reflect broader trends.
The Bloomberg data represents an improvement from the 2018 Diverse Asset Management Firm Assessment report, which also showed enhanced performance by women and minority-led funds, but reflected a more dismal outlook regarding management. According to Philanthropy News Digest, the 2018 report, which assesses not only hedge fund performance, but also that of mutual funds, real estate, and private equity, revealed in part, that “firms owned by women and/or minorities manage just 1.3 percent of the $69 trillion under management…”
While the past year reflects management in slightly higher numbers for funds governed by women or minorities, the measured growth is not parallel to the vast potential of these funds. The high yield of these funds, their continued strong performance in the wake of economic crises, and the outpacing of their counterparts should be a beacon for enlightened investors. With any hope, the new year and the new decade could lead deep-pocket investors to place these high-performing funds on track to realizing their full potential.